Extensive government support, coupled with Canada's reliable telephone system, provides an excellent infrastructure to support e-commerce systems. This year the government budgeted over $160 million for new online services, in an effort to stimulate e-commerce operations. And Canadian telephone company Bell Canada Enterprises recently announced plans to spend over $1 billion to develop high-speed Internet access over the next few years. Yet other telecommunications companies, such as BellSouth Canada and AT&T Canada, are in the process of developing a collection of B2B e-commerce services for businesses, such as online payroll and benefits management.
Although the U.S. and Canada share the longest border of any two countries in the world, selling into the Canadian market requires a distinct focus. Too often Americans assume that Canada is merely an extension of the U.S., but Canadians have a different system of government, a slew of cross-border regulations, and ambivalent feelings toward their American neighbors. For instance, the French-speaking province, Quebec, is far more culturally similar to France than it is to Canada's other provinces or the U.S.
Although Canada boasts substantial e-commerce development, continued B2B growth there is not a sure thing. In a 1999 survey by Andersen Consulting, only 29 percent of the Canadian executives surveyed said that exploiting the full potential of the Internet was a high priority. Canada's internal instability, with the possibility that Quebec may split off from the rest of the country in the future, also makes foreign investors edgy.--L.Z.
Cultural Tip: Tolerance for differences and a respect for diverse backgrounds are hallmarks of Canadian society. British, French, Inuit, Indian, German, and Chinese cultures are all highly respected in professional interactions.
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[Proofreader's note: this article was edited for spelling and typos on August 14, 2005]
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